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H A R VA R D L A W S C H O O L P ROGRAM ON THE L EGAL P ROFESSION Š law.harvard.edu/programs/plp Š T HE G ERMAN L EGAL P ROFESSION © 2011 by the President and Fellows of Harvard College. All rights reserved. Disclaimer These reports reflect research done by students at HLS in the Spring of 2011, and are based on secondary sources, as noted in each report. While we believe the information reflected in the re‐
ports to be true, the information has not been independently verified, and the reports are not meant to be complete with respect to any particular topic, and particularly as regards the legal system in its entirety, or in political or constitutional context. Readers should also recognize that terminology may vary from country to country, which may make naïve comparisons misleading. For example, the concept of a “lawyer” varies from country to country, and data on “lawyers” may include practicing and non‐practicing attorneys. No one should rely on the information con‐
tained in the reports for any purpose. Structure of legal education
Germany
Legal Education
German legal education consists of a four-year undergraduate
degree completed following completion of secondary school
and passage of the university entrance exam.
Students then take the First Examination, a comprehensive set
of exams that emphasizes academic knowledge of the law.
This is followed by a two-year practical training period
(Referendarzeit).
Typical age of starting lawyer
Status hierarchy of law
schools
Students then must pass the Second Examination, a
comprehensive set of exams that emphasizes practical legal
skills. Upon passage, students are entitled to work in any legal
profession.
German students typically begin university at age 19 or 20.i
Legal education requirements (university component,
practical component, and two comprehensive exams)
combined take a minimum of seven years, but most students
take somewhat longer to complete.ii Most German lawyers do
not begin their careers until their late 20s.iii
There are 44 universities in Germany that offer a legal
education.
There is not a particularly strong status hierarchy among
German law schools. There are no admission exams for
entrance to university, law faculties may only refuse
admission to a student if there is not enough space, and legal
education is standardized across universities.iv
The exception to this general rule is Bucerius Law School in
Hamburg. Bucerius is Germany’s only private law school, and
although only founded in 2000, it has quickly developed a
very strong reputation.
Conflicting results from various German university rankings
seem to confirm the lack of a clear status hierarchy. The
Center for Higher Education Development (CHE) and the
newspaper Die Zeit conduct annual rankings of German
universities. Rather than providing a numerical ranking, the
CHE University Ranking groups universities into top, middle,
and bottom groups. In the 2010 Ranking, 12 universities’ law
faculties were placed in the top group, 15 were placed in the
middle group, 14 were placed in the bottom group, and three
were unranked.v
Rough size of top law schools
How professional (vs.
academic) is the law degree?
Professional regulation: basic
licensing
Length of study for licensure
The German magazine Wirtschaftswoche also conducts an
annual ranking of German universities as measured by a
survey of hundreds of human resources managers at large
German corporations. In 2010, the Ludwig Maximilian
University of Munich (LMU Munich) and the University of
Münster tied for first in the Wirtschaftswoche ranking, while
Bucerius was third. While Münster and Bucerius were also in
the top group in the CHE rankings, LMU Munich was in the
bottom group of the CHE rankings. Overall, only half of the
universities in the top ten of the Wirtschaftswoche rankings
were also in the top group of the CHE rankings.vi
As of 2009, 89,331 students were studying law at German
universities.vii Approximately 10,000 students pass the Second
Examination every year.viii
There is not a large variation in the size of law faculties
among German universities; on average there are
approximately 2,000 students at each public university’s law
faculty. The main exception is Bucerius Law School, which
only has 561 enrolled students.ix
German legal education has a strong practical emphasis.
During the four-year university training, students are required
to study a broad range of legal topics. Instruction typically is
from the point of view of an impartial judge rather than an
advocate.x Students also are required to do practical work
during breaks between semesters.xi
Once students have passed the First Examination, they must
complete a two-year practical training period. During this
period, students must work at a civil court, a criminal court, a
prosecutor’s office, and in a private legal setting.xii Students
also attend classes taught by practitioners during this period.
Reforms in 2002 emphasized the importance of practical
training in “lawyering skills like negotiation, advocacy, and
legal advice.”xiii
Students are qualified to work in any legal profession once
they pass both the First Examination and the Second
Examination. To practice as a private attorney (Rechtsanwalt),
a student must apply to join a state branch of the Federal
Chamber of Lawyers (Bundesrechtsanwaltskammer).
However, there is no separate bar exam, and an applicant can
only be rejected under a narrow set of circumstances
(primarily ethical or criminal grounds).
Students study for the First Examination for about six months.
2
Students may retake once if they fail, but are excluded from a
legal career if they fail twice.xiv In 2009, 29.3% of candidates
failed the First Examination.xv
Requalification
Lawyers per population and
lawyers per working
population
Size of law firms
Share of attorneys at top
firms
Profitability of law firms
Leverage of law firms
Compensation structure
Students study for the Second Examination for six months to
one year. In 2009, 16% of candidates failed the Second
Examination.xvi
European attorneys may requalify either by continually
practicing in Germany for three years, or by sitting the
relevant equivalence exam.xvii
There is one attorney for every 372 people, and one attorney
per every 198 working people.
As of 2009, the German population was 81,802,000,xviii and
there were approximately 43,460,000 Germans in the labor
force. There are over 220,000 attorneys in Germany.xix
Law Firms
The JUVE Handbook maintains statistics on the 70 law firms
with the most German-based attorneys. These firms which
employ a total of 8,644 attorneys in Germany. The median
firm size is 85; the average firm size is 124.
Twenty-seven firms employ more than 100 attorneys in
Germany, ten employ more than 250 attorneys, and only one
employs more than 500 attorneys.xx A large proportion of
Germany’s largest law firms are U.S. or UK-based firms with
German offices.
Approximately 3.9% of German attorneys work for one of
Germany’s 70 largest firms.
The Lawyer’s European 100 collects data on the 100 highest
grossing law firms headquartered in continental Europe.
Among the 17 German-based firms on the list, the average
revenue per equity partner was €1.40 million.xxi
Germany’s 70 largest law firms have a total of 2,591 equity
partners out of 8,644 total attorneys. Thus, there are
approximately 2.3 attorneys per equity partner.xxii
According to a 2004 article, leverage in the larger German
firms was increasing, with the result that associates tended to
have to wait longer to become partners. According to a law
firm consultant, leverage ratios of 1:3 had become more
common.xxiii This article also mentioned that some law firms
introduced statuses other than associate and equity partner,
such as junior partner, to provide young lawyers with an
incentive to reach an intermediate position.
Firms, especially larger firms, generally still adhere to a
3
lockstep system for associates.xxiv However, reports indicate
that there has recently been a slight tendency among firms to
shift their compensation structures for associates towards an
incentive-based system.xxv
Law firm retirement age
Law firm governance
Type of legal system
Punitive damages in civil
cases
Juries in civil cases
Rules on contingent fee
litigation
Rules on attorney’s fees and
other costs in litigation
Typical starting salaries, as of January 2011, in the top-paying
firms ranged from €85,000 to €110,000. Bonuses usually
depend on performance of the individual and/or the firm. Top
salaries for sixth-year associates at the top-paying firms range
from €120,000 to €200,000.xxvi
There does not seem to be a standard retirement age. For
example, a White & Case partner left the firm in 2008 at the
age of 61 to found his own firm.xxvii At Freshfields, the
mandatory retirement age in the German office is between 58
and 65, but there are older retirees at the firm.xxviii However,
there appeared to be dissatisfaction with letting partners stay
at firms for too long.
Usually, firms are governed by various committees of
partners. German lawyers may incorporate their practice to
obtain limited liability,xxix but only lawyers and other
enumerated professionals who work together with the lawyers
may own interests in such corporations, and lawyers must
hold the majority of the voting rights.xxx
Law/Legal procedure
Germany has a civil law system.xxxi
Punitive damages in civil cases are not permitted by law, and
may be unconstitutional.xxxii
Germany does not have a jury system.
Contingent fees traditionally were not permitted. However, a
2006 decision of the German Constitutional Court held that a
blanket ban on contingent fees was unconstitutional.xxxiii The
German parliament subsequently passed a law allowing
contingent fees if the client otherwise would not be able to
enforce or defend her legal rights.xxxiv
The losing party must pay all litigation costs, including court
costs and the losing party’s attorney fees.xxxv
The Rechtsanwaltsvergütungsgesetz (Law on the Regulation
of Attorneys’ Fees) contains a series of schedules that
establish flat fees for attorney services (statutory fees). Clients
and attorneys may agree to a negotiated hourly rate in lieu of
the statutory fee. However, the losing party is only liable for
an amount equal to the statutory fee.
Costs are distributed proportionally if a party partially
wins.xxxvi
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Rules on discovery
Rules on class actions
Prevalence and prominence of
“plaintiff’s bar” and class
actions brought on behalf of
shareholders or consumers
against large companies
There is no system of discovery, although in some
circumstances the substantive law at issue may require parties
to deliver certain documents to the court or to the other
party.xxxvii The impact of the lack of discovery is mitigated by
German rules on burdens of proof; “The burden will usually
be shifted to the party who has access to the relevant
information.”xxxviii
Historically, class actions have not been permitted in
Germany. The German parliament adopted the
Kapitalanleger-Musterverfahrengezetz (Capital Investors’
Model Proceedings Act) in 2005 to allow limited class actions
for securities fraud cases only. The law is “expressly intended
as an experiment” in class action lawsuits and includes a
sunset provision (it will expire in 2012 unless renewed).xxxix
There is essentially no plaintiff’s bar in Germany due to the
unavailability of class action lawsuits, stringent discovery
rules, “loser pays” rule for litigation costs, and lack of
punitive damages.
i
Stephan Korioth, Legal Education in Germany Today, 24 WISC. INT’L L.J. 85, 90 (2006).
Id., at 96-99.
iii
Id., at 103.
iv
Id., at 90.
v
CHE University Ranking 2010, available at
http://www.daad.de/deutschland/hochschulen/hochschulranking/06543.en.html?module=Hitliste&do=show_l1&hsty
p=1&esb=5.
vi
“Uni-Ranking 2010: Deutschlands beste Unis aus Personalchef-Sicht,” WirtschaftsWoche, May 22, 2010,
http://www.wiwo.de/management-erfolg/deutschlands-beste-unis-aus-personalchef-sicht-430954/.
vii
Statistisches Bundesamt Deutschland,
http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/EN/Content/Statistics/TimeSeries/LongTermSeries
/Education/Content100/lrbil03a,templateId=renderPrint.psml.
viii
Korioth, Legal Education in Germany Today, at 89.
ix
“Facts and Figures,” Bucerius Law School, http://www.law-school.de/hochschule.html?&L=1.
x
Korioth, Legal Education in Germany Today, at 93-94.
xi
Id., at 92.
xii
Id., at 97-98.
xiii
Id., at 98.
xiv
Id., at 96-97.
xv
Bundesministerium der Justiz, Ausbildungsstatistik 2009, Übersicht über die Ergebnisse der Ersten Juristischen
Staatsprüfung im Jahre 2009 (neues Recht), March 23, 2011, available at http://www.bundesjustizamt.de/nn_
1634386/DE/Themen/Justizstatistik/Ausbildung/downloads/Ausbildungsstatistik2009,templateId=raw,property=p
ublicationFile.pdf/Ausbildungsstatistik2009.pdf.
xvi
Id.
xvii
The Law Society of England and Wales. How to practise in Germany (2007),
http://international.lawsociety.org.uk/ip/europe/574/practise
xviii
Statistisches Bundesamt Deutschland, “Bevölkerung: Bevölkerung nach dem Gebietsstand,”
http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/DE/Content/Statistiken/Zeitreihen/LangeReihen/B
evoelkerung/Content75/lrbev03a,templateId=renderPrint.psml.
ii
5
xix
Korioth, Legal Education in Germany Today, at 89-90.
JUVE HANDBUCH WIRTSCHAFTSKANZLEIEN 2010/2011, available at http://www.juve.de/handbuch/de/juvehandbuch-wirtschaftskanzleien-statistiken.
xxi
The Lawyer European 100, available at
http://www.centaur2.co.uk/emags/thelawyer/tl_Euro100_2011/pageflip.html.
xxii
JUVE HANDBUCH WIRTSCHAFTSKANZLEIEN 2010/2011.
xxiii
Katja Wilke, Aufstieg zum Partner wird für Junganwälte immer schwerer, HANDELSBLATT, Sept. 4, 2004,
available at http://www.handelsblatt.com/unternehmen/mittelstand/aufstieg-zum-partner-wird-fuer-junganwaelteimmer-schwerer/2396098.html.
xxiv
Christoph Luschin, Large Law Firms in Germany, 14 TOURO INT’L L. REV. 26 (2010). See also JUVE,
Anwaltsmarkt 2010/11: Trends und Entwicklungen, available at http://www.juve.de/handbuch/de/2010/kapitel/u10.
xxv
Id.
xxvi
Azur-Online, azur100: Gehälter in großen und internationalen Kanzleien, available at http://www.azuronline.de/azhtml/mag_akt_2011-100_gehaltk.html.
xxvii
JUVE, Dresden: Ex-White & Case-Partner Bauer gründet Kanzlei, Nov. 5, 2009, available at http://
www.juve.de/nachrichten/namenundnachrichten/2009/11/dresden-ex-white-case-partner-bauer-grundet-kanzlei.
xxviii
JUVE, Altersweisheit: Freshfields diskutiert Kanzlei-Pensionen, May 12, 2005, available at
http://www.juve.de/ nachrichten/namenundnachrichten/2005/05/altersweisheit-freshfields-diskutiert-kanzleipensionen.
xxix
BRAO, § 59c.
xxx
BRAO, § 59e.
xxxi
The Law Society of England and Wales. How to practise in Germany (2007),
http://international.lawsociety.org.uk/ip/europe/574/practise
xxxii
Volker Behr, Myth and Reality of Punitive Damages in Germany, 24 J. L. COMM. 197, 198-199 (2005).
xxxiii
Bundesverfassungsgericht [BVerfGE] [Federal Constitutional Court] Dec. 12, 2006, 1 BVR 2576/04 (F.R.G.).
xxxiv
Rechtsanwaltsvergütungsgesetz [RVG] (Law on the Regulation of Attorney’s Fees), § 4a.
xxxv
Zivilprozeßordnung [ZPO] (Civil Procedure Code), § 91.
xxxvi
Id., § 92.
xxxvii
ABA SECTION OF ANTITRUST LAW, OBTAINING DISCOVERY ABROAD 128 (2d ed. 2005).
xxxviii
Id., at 129.
xxxix
Mark C. Hilgard and Jan Kraayvanger, Class Acts and Mass Torts in Germany, IBA LITIGATION COMMITTEE
NEWSLETTER (Sept. 2007), 40.
xx
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